SIA sees progress in Air India's transformation

In its financial results announcement for the first half of FY2026-27, Singapore Airlines (SIA) said, “Air India has made tangible progress in its multi-year transformation, including enhancements to customer experience and operational performance. This has been accompanied by improving customer sentiment, as reflected in the positive trajectory of its Net Promoter Score, and external recognition, including being named Best Airline in India at the 2026 Skytrax World Airline Awards.”

“SIA, and its partner, Tata Sons, recognise that a transformation of this scale will take time. Both partners continue to work closely to support Air India’s journey towards profitable growth, including strengthening structural cost efficiencies, unlocking greater synergies between Air India and Air India Express, sharpening its commercial strategy to navigate current external challenges elevating its customer proposition.”

SIA said it continues to deepen commercial partnerships with like-minded carriers in key markets to enhance network connectivity and deliver greater value to customers.

SIA added that, following the signing of their Commercial Cooperation Framework Agreement in January 2026, Air India and SIA launched the first phase of joint initiatives in October 2026. These include additional flight options between Singapore and eight Indian cities through the airlines' respective booking channels, offering greater flexibility and a more seamless booking experience. Enhanced reciprocal loyalty programme benefits were introduced in April 2026, with further enhancements planned for the second quarter of 2027.

It also noted that the Group’s 25.1% strategic stake in the Air India Group is a key pillar of its multi-hub strategy. This direct participation in one of the world’s largest and fastest-growing aviation markets complements the SIA Group’s main hub in Singapore and broadens access to new traffic flows.

The SIA Group's net profit for the first half of FY2026/27 declined by S$105 million, or 43.9%, to S$134 million. This was mainly due to a 29.1% decrease in operating profit to S$569 million. The impact was partially offset by a lower share of losses from associated companies, mainly Air India, which had a positive impact of S$68 million on the Group's net profit. Lower tax expenses also helped offset the decline.

In the second quarter of FY2026/27, the Group's operating profit increased by 16.3% year-on-year to S$463 million, while net profit rose to S$210 million from S$52 million in the corresponding period last year. The improvement was driven by stronger operating profit and a lower share of losses from associated companies, mainly Air India, which had a positive impact of S$110 million on the Group's net profit.

SIA said the Group will continue to make strategic investments in both Singapore Airlines and Scoot, advance its multi-hub strategy through its investment in Air India, and strengthen mutually beneficial partnerships with like-minded carriers in key markets.